JD stock under pressure after Tencent decided to reduce its stake

JD.com (JD.US) stock took a hit following news that China-based online retail giant’s largest shareholder, Tencent Holdings (TME.US), will reduce its stake in the company to 2.3% from 17%, as it believes that JD is now large enough and does not require backing. The move comes after heavy scrutiny of China's Internet giants by anti-monopoly regulators. Tencent will transfer most of its JD.com stake -- around 457.3 million Class A shares -- to existing shareholders in the form of a dividend.

JD.com (JD.US) stock launched today's session with a bearish price gap however buyers manage to halt declines around the major support zone at $66.51 which is strengthened by 50% Fibonacci retracement of the upward wave launched in March 2020. As long as the price sits above, further upward move is possible. On the other hand, if sellers will manage to break below, then support at $53.90 may be at risk. Source: xStation5